January 2012 - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

Thursday, January 26, 2012

ICICI Securities expects IPO market to do better in 2012

January 26, 2012 0
ICICI Securities expects IPO market to do better in 2012
According to ICICI Securities, the primary market or the market of Initial Public Offers (IPOs) is likely to be better in the current calendar year on the back of an easing interest rate environment

"We hope that it will be better in the current calendar year in comparison to last year as the reverse rate cycle is likely to set in," ICICI Securities Managing Director and Chief Executive Officer Anup Bagchi said

Wednesday, January 25, 2012

Difference between Tax Saving and Tax Free Bonds

January 25, 2012 1
Difference between Tax Saving and Tax Free Bonds
A lot of investors tend to get confused between the two types of tax-friendly avenues that are getting popular these days - Tax Free Bonds and Tax Saving Bonds. However, it is critical to note the difference between the two

Tax Saving Bonds are Long Term Infrastructure Bonds issued in pursuance of Section 80CCF of the Income Tax Act, 1961 which was introduced as part of offering investors tax deductions for investment in development of infrastructure in the country

HUDCO Tax Free Bonds Interest Rates and Details

January 25, 2012 0
HUDCO Tax Free Bonds Interest Rates and Details

HUDCO is coming up with a Tax-Free Bond Issue, which would open for subscription from Friday, January 27, 2012


Issue Size and Credit Ratings:
The issue size of the bond issue would be Rs. 4,684.72 crores and the issue has been rated by CARE and Fitch. Fitch Ratings has given a rating of Fitch AA+ and CARE AA+ by CARE, which is one notch below the maximum rating

Face Value and Minimum Investment
The Face Value of each bond would be Rs.1,000/- and the minimum investment would be Rs.10,000/- and in multiples of Rs.1,000/- thereafter. The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under Section 10 (15) of IT Act. Moreover, there will be no deduction of tax at source from the interest, which accrues to the bondholders on these bonds irrespective of the amount of the interest or the status of the investors

Interest Rate and options available:

Tuesday, January 24, 2012

Indian Railways Finance Corporation (IRFC) Tax Free Bonds Details

January 24, 2012 0
Indian Railways Finance Corporation (IRFC) Tax Free Bonds Details

Indian Railway Finance Corporation Limited (IRFC) has issued Tax Free Bonds to raise money from the market to finance the outlay of Indian Railways. The issue would open for subscription from Friday, January 27, 2012 and the scheduled date of closure would be Friday, February 10, 2012

Issue Size and Credit Ratings:
The issue size is Rs. 6,300 crores and the issue has been rated CRISIL AAA and CARE AAA by CRISIL and CARE respectively, which is their highest rating. Out of the total issue size, 30% would be reserved for Retail Investors (Retail Investor can make investment upto Rs.5 Lakhs)

Face Value and Minimum Investment
The Face Value of each bond would be Rs.5,000/- and the minimum investment would be Rs.10,000/-. The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under Section 10 (15) of IT Act. Moreover, there will be no deduction of tax at source from the interest, which accrues to the bondholders on these bonds irrespective of the amount of the interest or the status of the investors

Interest Rate and options available:

Top 3 Performing IPOs of 2011

January 24, 2012 0
Top 3 Performing IPOs of 2011
The calendar year 2011 was not the best of the years when it came to Indian Capital Markets and particularly for the IPO market. However, there were three companies that have so far excelled in performance post listing (in terms of current market price):

1. Onelife Capital Advisors Ltd.
Onelife Capital Advisors is a financial service company offering investment banking services and portfolio management and equity broking services. Company is focused on nurturing small and medium sized enterprises (SME) companies to source capital in various forms. The company came out with an IPO at an Issue Price of Rs.110/- per equity share. The share is currently ruling at around Rs.260/-. The company is still in loss making stages and it is surprising to see it maintain the such high prices

Click here for all posts on Onelife Capital Advisors IPO!


2. Aanjaneya Lifecare Ltd.
The company, a Mumbai-based pharma company is engaged in the manufacture of anti-malarial active pharmaceutical ingredients (APIs) and herbal medicines, inhalers, lozenges and animal health products, came out with its IPO in May, 2011 and has since maintained for a larger part, a gain of more than 100% over the issue price. The company is the world's third-largest manufacturer of quinine salts used in the treatment of malaria. It is also one of the country's largest contract manufacturers of codeinebased cough syrups

Click here for all posts on Aanjaneya Lifecare IPO!


3. Rushil Decor Ltd.
Rushil Decor came up with an IPO of Equity Shares in June 2011. Rushil Decor Ltd. is a flagship company of the Rushil Group which is a leading Indian manufacturer of decorative high pressure laminates and plain particle boards. The group operates in India and internationally with brand names of Vir laminate and Rushil decor premium laminate. They have four manufacturers of particle board products and decorative laminated products in Gujarat state. Vir Laminate is the largest seller of Laminated sheets and Particle Board in India. The Issue Price of the IPO was fixed at Rs.72/- per share while the stock is currently ruling at around Rs.140/- per share

RINL IPO and NBCC IPO may hit the streets soon

January 24, 2012 0
RINL IPO and NBCC IPO may hit the streets soon
According to a report in Economic Times, The government plans to come out with two initial public offers (IPO) - Rashtriya Ispat Nigam Limited(RINL) and National Building Construction Corporation (NBCC) - to raise about Rs 3,000 crore in the current fiscal itself as part of its efforts to garner funds

The year of 2011 has not been the best of the years for IPO and the government would be looking to make over some of the divestment target till March, 2012. The aforesaid IPOs may help in taking Government's divestment objectives a step further

SEBI introduces call auction session to curb IPO listing volatility

January 24, 2012 0
SEBI introduces call auction session to curb IPO listing volatility
The market watchdog SEBI has said that normal trading upon listing of an IPO can now take place only after a call auction session. This is primarily a move to check volatile price movements on the first day of trading in newly listed and re-listed stocks

Sunday, January 22, 2012

Vodafone's big win would clear road for IPO

January 22, 2012 0
Vodafone's big win would clear road for IPO
The Supreme Court has made a historical judgement and ruled in favour of Vodafone in a tax case that was pending since a long time. The court has made a critical judgement stating that the Indian tax department cannot tax the transaction that saw Vodafone acquire 67 per cent stake in Hutchison Essar, a mobile phone operator in India in 2007. The deal was for a staggering Rs.55,000 crores or $11.5 billion. The Court observed that I-T dept has no jurisdiction on transactions outside the country

Further, the Income-Tax Department has been asked to return to Vodafone Rs.2,500 crore which it had earlier paid to the department. The Apex Court has also asked the department to pay the said amount along with 4 per cent interest within two months. Supreme Court Registry has also been asked to return to Vodafone the bank guarantee of Rs.8,500 crore

The case will come as a great relief from legal tangles for Vodafone and would clear the deck for the company's proposed Initial Public Offering (IPO). In several interviews earlier also, Vodafone's global CEO Vittorio Colao had warned that the outcome of the tax case would govern Vodafone's approach to future investment in its India arm

Friday, January 20, 2012

Mutual Fund NFO: Indiabulls Mutual Fund launches Indiabulls Bluechip Fund NFO

January 20, 2012 0
Mutual Fund NFO: Indiabulls Mutual Fund launches Indiabulls Bluechip Fund NFO
Indiabulls Mutual Fund has launched Indiabulls Bluechip Fund. The scheme will be jointly managed by Aviral Gupta, Amarjeet Singh and Sumit Bhatnagar

The investment objective of the scheme would be to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of blue-chip large-cap companies.

The New Fund Offer (NFO) has opened for subscription on today on January 20, 2012 and closes on February 3, 2012. As with all NFOs, it is priced at Rs.10/- per unit. The minimum application amount would be of Rs.5000 and in multiples of Re.1 thereafter for lumpsum investment. For Systematic Investment Plan (SIPs), the minimum application would be of Rs.1000 and in multiples of Re.1 thereafter

The scheme would allocate 65% to 100% of assets in equity and equity related securities - blue chip large-cap companies, upto 35% of assets in equity and equity related securities - other companies and upto 35% of assets in debt & money market securities / instruments

Click here for full details on Indiabulls Bluechip Fund NFO

Indiabulls Bluechip Fund NFO Details

January 20, 2012 0
Indiabulls Bluechip Fund NFO Details
Type of scheme: Open-Ended
NFO opens from: January 20, 2012
NFO closes on: February 3, 2012
Benchmark Index: S&P CNX Nifty
Minimum Application Amount: Rs.5,000 for lumpsump application and Rs. 1,000 for SIP
Options: Growth & Dividend (Dividend Re-investment & Dividend Pay-out)
Exit Load: 1% if redeemed/switched out within first year, NIL if redeemed/switched out after 1 year


Thursday, January 19, 2012

Wednesday, January 18, 2012

Reliance buyback can be the biggest in history

January 18, 2012 0
Reliance buyback can be the biggest in history
Reliance Industries Ltd. led by billionaire Mukesh Ambani, has informed the NSE and the BSE that the company is considering a proposal to buyback equity shares at a board meeting scheduled to be held on January 20, 2012

A notice on the BSE website read: "Reliance Industries Ltd. has informed BSE that a meeting of the Board of Directors of the Company will be held on January 20, 2012, inter alia, to consider and approve a proposal for Buy Back of the Company's equity shares in accordance with all applicable provisions of law"

Although there is no announcement in this regard, the speculation is that the buyback could be around 10-12 per cent of the existing equity of Reliance Industries Limited. RIL is India's largest company and the buyback, if materialized is likely to be the biggest in India's history, according to Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities

The buyback will utilise the large pile of cash and cash equivalents (approximately Rs.70,000 crore) lying on Reliance’s Balance Sheet. Currently, the market capitalisation of Reliance Industries is in excess of Rs.2.5 Lakh Crores

The Buyback Price is speculated to be around Rs.850 to Rs.900 per share, although there is no official communication in this regard. Check back this blog for latest updates on Reliance Industries Ltd. Buyback Offer

Reliance Industries considering buyback

January 18, 2012 0
Reliance Industries considering buyback
Reliance Industries Ltd has informed the NSE and the BSE that the company is considering a proposal to buyback equity shares at a board meeting scheduled to be held on January 20, 2012. There is speculation that it could be around 10-12 per cent of the existing equity of Reliance Industries Limited

Click here for more on Reliance Industries Buyback from Indian IPO Blog Buzz

Morgan Stanley launches Morgan Stanley Multi Asset Fund

January 18, 2012 0
Morgan Stanley launches Morgan Stanley Multi Asset Fund
Morgan Stanley has launched Morgan Stanley Multi Asset Fund, an open-ended debt fund, with an aim to generate regular income for its customers.  The NFO opens for subscription on Tuesday, January 17, 2012 and will close on Tuesday, January 31, 2012

SEBI IPO Crackdown continues with Taksheel Solutions IPO

January 18, 2012 0
SEBI IPO Crackdown continues with Taksheel Solutions IPO
SEBI has been on a roll with crackdowns on IPOs. Now, as part of a crackdown by the Securities & Exchange Board of India (SEBI) on manipulation of public offerings, Taksheel Solutions Limited (TSL), its directors, key executives and its merchant banker, PNB Investment Services (PNB) are among those barred from accessing the capital markets

Franklin Templeton launches India Feeder Fund

January 18, 2012 0
Franklin Templeton launches India Feeder Fund
Franklin Templeton has launched Franklin Templeton India Feeder - Franklin US Opportunities Fund, an open ended fund which will invest into the Luxembourg domiciled Franklin US Opportunities Fund (Master Fund), which in-turn invests in US based companies across different sectors

Franklin US Opportunities Fund (Master Fund) follows a combination of bottom up and top down approach and has major exposure to large cap US companies

The minimum investment amount is Rs. 5,000. It would carry 2% exit load if redeemed before one year. The fund will be benchmarked against Russell 3000 Growth Index

The fund opened for subscription on Tuesday, January 17, 2012 and closes on Tuesday, January 31, 2012. The scheme reopens for subscription on Tuesday, February 14, 2002

Tuesday, January 17, 2012

We've added new sections!

January 17, 2012 0
We've added new sections!
Keeping in pace with the developments in the world of investing in India, Indian IPO Blog would now also report on a wider spectrum of investing avenues in India. We would now also feature posts on Bonds, Debentures as well as New Fund Equity Offers from Mutual Funds in India. The IPO news and updates would continue as usual (Learn more....)

We'd be covering the newer areas in same old format that you love - simple and to the point posts! We hope the new version of the blog would be helpful in keeping you updated on the latest happenings of the investing world in India.

Here are some quick ways to stay updated on our latest posts:

Click here for more details on new sections introduced

PTC India Financial Services (PFS) Long Term Infrastructure Bonds - Series 2 Details

January 17, 2012 0
PTC India Financial Services (PFS) Long Term Infrastructure Bonds - Series 2 Details
PTC India Financial Services (PFS) Long Term Infrastructure Bonds, which carry benefit under Section 80CCF of the Income Tax Act, 1961, will be open till February 29, 2012

Following are the salient features of the bonds:

PTC India Financial Services (PFS) Long Term Infrastructure Bonds - Series 2 Details:
Eligibility: Resident Indian Individuals and HUFs
Application Size: The lots for application would be 1 Bond and in multiples of 1 Bond thereafter.
Face Value: Rs.5,000/- per bond
Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period
Rating:  ‘A+’ by CARE, ‘A+’ by ICRA, ‘AA’ by Brickwork Ratings

SEBI crackdown on Tijaria Polypipes IPO

January 17, 2012 0
SEBI crackdown on Tijaria Polypipes IPO
As part of the nationwide crackdown on Initial Public Offerings (IPO), the Securities Exchange Board of India (SEBI) has barred Tijaria Polypipes (TPL) as well as several individuals and stock brokers from accessing the securities market

Earlier, SEBI had received a complaint alleging insider trading and artificial volumes had caused huge losses to retail investors. An investigation exposed a shocking tale of manipulation and deceit through the collusion with certain retail and qualified institutional buyers (QIBs). The three QIBs—Sparrow Asia Diversified Opportunities Fund, Credo India Thematic Fund (CREDO), and IPRO Funds were clearly allowed to exit the stock on listing day at a premium to the issue price. They had exited at an average price of Rs.62 per share, while the stock closed at Rs18.10 towards the end of the day

Indian IPO Blog Insights had recommended a clear avoid to the issue. Click here to read Indian IPO Blog Insight on the IPO

Monday, January 16, 2012

India's first online Retail Government Security Portal launched by IDBI Bank

January 16, 2012 0
India's first online Retail Government Security Portal launched by IDBI Bank
Retail Investors would have one more investment avenue in the form of Government Securities now. IDBI Bank Ltd. has launched India's first online retail G-Sec Portal. This Portal provides an opportunity for retail investors to invest in Government securities. Government Securities are bonds issued, by Central and State Government

Vishwanath Sugar and Steel proposes IPO

January 16, 2012 0
Vishwanath Sugar and Steel proposes IPO
Vishwanath Sugar and Steel Industries Ltd. said on Monday that it has filed for an Initial Public Offering to raise around 3.74 billion rupees.

The company produces sugar, alcoholic spirits by distillation including ethanol, blending and bottling of indian made foreign liquor and generation of power

Stay tuned for more on the IPO!


Sunday, January 15, 2012

L&T Infrastructure Finance Tax Saving Bonds (Tranche - 2) Details

January 15, 2012 0
L&T Infrastructure Finance Tax Saving Bonds (Tranche - 2) Details
L&T Infrastructure Finance Company has issued Tranche 2 bonds through a public issue of Long Term Infrastructure Bonds with a Face Value of Rs 1,000 each in the nature of secured, redeemable, non-convertible debentures having benefits under Section 80CCF of the Income Tax Act, 1961

The Tranche 2 Bond Issue has opened from January 10, 2012, and will close on February 11, 2012, or earlier, as may be decided by the board of the company

Following are the salient features of the bonds:

Section 80CCF Tax Saving Bonds: REC Long Term Infra Bonds Details

January 15, 2012 0
Section 80CCF Tax Saving Bonds: REC Long Term Infra Bonds Details
REC Long Term Infrastructure Bond-Series (2011-12), which carries benefit under Section 80CCF of the Income Tax Act, 1961, has opened from December 19, 2011 and will be open till February 10, 2012

Following are the salient features of the bonds:

REC Long Term Infrastructure Bonds (Series - 2011-12) Details:
Eligibility: Resident Indian Individuals and HUFs
Application Size: The lots for application would be 1 Bond and in multiples of 1 Bond thereafter.
Face Value: Rs.5,000/- per bond
Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period
Security: Unsecured

Interest Rates and other details:

IDFC Tax-Saving Bonds - Tranche 2 - Section 80CCF Bonds Details

January 15, 2012 0
IDFC Tax-Saving Bonds - Tranche 2 - Section 80CCF Bonds Details
IDFC Long-term Infrastructure Bonds – Tranche 2, a tax saving bond issue having benefit under Section 80 CCF of Income-Tax Act, 1961 is open for subscription till February 10, 2012


The following are the details of the bonds:

Eligibility: Resident Indian Individuals and HUFs

Application Size:
The lots for application would be 2 Bonds and in multiples of 1 Bond thereafter.

Face Value: Rs.5,000/- per bond

Lock-in period: 5 years

Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period

Availability: In dematerialized form and in physical form.

Interest Rates and other details:

Section 80CCF Tax Saving Bonds - SREI Infrastructure Long Term Infrastructure Bond-Tranche 1

January 15, 2012 0
Section 80CCF Tax Saving Bonds - SREI Infrastructure Long Term Infrastructure Bond-Tranche 1
SREI Infrastructure Long Term Infrastructure Bond - Tranche 1, a bond issue covered by the benefit of Section 80CCF of the Income Tax Act, 1961 has been launched. The Issue will remain open till January 31, 2012

The following are the details of the bonds:

Eligibility: Resident Indian Individuals (Minors not eligible) and HUFs

Application Size:
The lot for application would be 1 Bond and multiples of 1 Bond thereafter.

Face Value: Rs.1,000/- per bond

Lock-in period: 5 years

Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period

Availability: In dematerialized form and in physical form.

Canara Robeco Mutual Fund plans a Gold ETF

January 15, 2012 0
Canara Robeco Mutual Fund plans a Gold ETF
Canara Robeco Mutual Fund has filed an offer document with SEBI to launch its open-ended Canara Robeco Gold ETF. The minimum application amount is Rs. 5,000. The fund will be benchmarked against domestic price of physical gold. The fund will be managed by Akhil Mittal

Canara Robeco Asset Management Company Limited (CRAMC), the investment managers of Canara Robeco Mutual Fund, is a joint venture between Canara Bank and Robeco of the Netherlands, a global asset management company that manages about US$180 Billion worldwide. The joint venture brings together Canara Bank's experience in the Indian market and Robeco's global experience in asset management.

Stay tuned to this blog for more updates on Canara Rocecco Gold Exchange Traded Funds (ETFs)

IDBI plans to launch a Gold Fund

January 15, 2012 0
IDBI plans to launch a Gold Fund
IDBI Mutual Fund has filed an offer document with SEBI to launch its open-ended IDBI Gold Fund. The fund will invest in its recently launched IDBI Gold ETF

It must be noted that this is not the Gold Exchange Traded Fund of IDBI, but would be a different fund altogether which would in turn, invest in IDBI Gold ETF

The minimum application amount is Rs. 5,000. The fund will be benchmarked against domestic price of gold. The scheme will only have growth option. It carries 1% exit load if redeemed within a year.

SEBI cracks on Brooks Labs

January 15, 2012 0
SEBI cracks on Brooks Labs
SEBI has asked Brooks to call back the ICDs advanced by it to certain entities and together with all the IPO proceeds deposit it in an interest-bearing escrow account

Moreover,  Brookes Laboratories’ (Brooks) chairman Atul Ranchal, managing director Rajesh Mahajan and six others, including the merchant banker D&A Financial Services (DAFS) have been barred from the capital market by the Securities & Exchange Board of India (SEBI) as part of its crackdown on companies that came up with an IPO recently

Friday, January 13, 2012

Indian IPO Blog - New changes introduced

January 13, 2012 0
Indian IPO Blog - New changes introduced
They say change is the only constant and we believe change is also sometimes inevitable. That's why we have tweaked some as well as added many new sections to Indian IPO Blog. The new version would cover a wider spectrum of investing domain. The regular updates about IPOs would be continued as usual under IPO News section. We're delighted to introduce the following new sections: 

Indian IPO Buzz
Indian IPO Buzz would cover notifications and updates on corporate actions of top stocks such as Bonus Issues, Stock Splits, Consolidation of shares and significant Mergers & Acquisitions announcements

Direct URL: http://buzz.indianipoblog.com


Indian IPO Blog Insights

Indian IPO Blog Insights features fundamental analysis, news, views, reviews, ratings and insights into the latest IPOs in the Indian markets



Indian IPO Blog would now also cover news and updates on the latest Equity New Fund Offers (NFOs) from Mutual Fund AMCs. The section would keep you posted on the ongoing new equity schemes launched by various Mutual Funds in India



Bonds and NCD Issues:
This section will house information, details and new announcements on Bonds, Non-Convertible Debentures (NCD) and other fixed income instruments like bank and company deposits including tax-saving instruments, provident and pension funds


This would include articles, views, opinions and suggestions on various matters of personal finance, tax planning and investment in general. Readers are also encouraged to contribute articles, views, suggestions and opinions on anything related to finance here. Selected posts would be published after moderation

Direct URL: http://www.indianipoblog.com/search/label/Opinions

Feel free to post your views on additional features at indianipoblog(at)gmail.com

SEBI calls for attracting retirement money into market

January 13, 2012 1
SEBI calls for attracting retirement money into market

Market regulator Securities and Exchange Board of India (Sebi) today said asset management companies (AMCs) (mutual fund houses) should launch pension products, so that retirement money can be brought into the capital market.

"Retirement and pension money is not coming into the market. It is legally possible that retirement money can be invested in the markets ... why are AMCs not able to launch pension funds?" Sinha said at India Investment Conference

Indian Railway Finance Corporation Limited proposes tax free bonds

January 13, 2012 0
Indian Railway Finance Corporation Limited proposes tax free bonds
Indian Railway Finance Corporation Limited (IRFC) has proposed to issue Tax Free Bonds to raise money from the market to finance the outlay of Indian Railways.

The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under Section 10 (15) of IT Act. Moreover, there will be no deduction of tax at source from the interest, which accrues to the bondholders on these bonds irrespective of the amount of the interest or the status of the investors

IRFC is the financing arm of the Indian Railways and a Public Financial Institution under Section 4A of the Companies Act, 1956, which is fully held by Government of India

Click here for complete details on IRFC Tax Free Bonds

Do some homework before investing in stocks

January 13, 2012 0
Do some homework before investing in stocks
In these times of gloom, it becomes all the more important to do some research before you go around chasing that new IPO in the town. While we can’t ignore the robust returns that Coal Indias and Jubilant Foodworks of the world have generated, one has to look at the other side of the story as well. Many of following things apply to secondary market as well, though they are specially relevant in case of IPOs

Get the basics right! Look at Fundamentals!

Overlooking fundamentals of the company is quite common in a haste to make a quick buck from the market. Many gullible investors get so lured by high Grey Market Premiums that they hardly bother to get an idea even about what the company is and what it is doing, let alone the balance sheet position or profitability! Investors should make it a point to read the IPO Grading Document from credit rating agencies on fundamentals of the company. Credit Rating Agencies in India assign IPO Grades on a scale of IPO Grade 1 to IPO Grade 5 with IPO Grade 1 indicating relatively poor fundamentals and IPO Grade 5 indicating that the company has strong fundamentals compared to other listed entities


Avoid the ‘Halo’ effect

Just because your buddy, broker, butler or barber says that the company is going to be the next Infy, it isn’t going to make it so. Remember that it is the job of investment bankers and managers of the issue to secure maximum subscription and so they may create a lot of hype around it. Avoid the herd instinct and take some time out to refer to the Red Herring Prospectus – this is the single most important document offering a wide range of details and disclosures about the company and its business. Have a look at the promoters’ standing by going through their background, the experience in the industry, the performance of the other companies promoted by them. Check to see whether there are major litigations or other risk factors against the promoters or the company. A quick look at these things would make sure that you do not invest purely on hunches, rumours, or 'hot' tips


Evaluate company performance

At the end of the day, share prices are a reflection of how good the company is performing and how good it is expected to. Grabbing a copy of the financial statements of the company for previous few years and going through them patiently will certainly do justice to your time spent on it. Look at the balance sheet position and profitability ratios of the company and compare them with similar companies within the industry. Bear in mind that if a business does well, the stock would eventually follow. Watch out for window dressing of financial statements Check if the figures in line, above or below par with the similar companies in the industry. It is amazing how some loss making companies suddenly turn profitable exactly a quarter or two before the IPO! See to it whether there is a sudden improvement in the numbers just before the issue without any justifiable reasons.

Check out the Price to Earnings (P/E) Ratio considering the price band and compare the same with peers of the company. P/E Ratio is an indicator of the number of multiples that the market price would be over its current profit levels. The general rule of the thumb for P/E is that the lower the P/E, the better it is for the investor, because a lower P/E multiple essentially means that you are getting to buy something at a price which can be considered cheaper keeping the earnings of the company in perspective. Bear in mind, though, that during booming times it is easy to get carried away on this front since the prices of P/E of peers are also at elevated levels.


Glance over the objects and future prospects

Check whether the objects of the issue seem to be line with the business of the company and congruent with its future prospects. See to it whether there are companies within the group doing the same business and whether company intends to utilize the proceeds in a way that would be in the interest of itself or would rather benefit other companies in the group. Also, have a look what would be the promoters’ holding after the issue. A smaller post-issue stake may indicate the reduced promoters’ confidence in the future prospects of the company

Cheap, yet so expensive!

Legendary Investor Warren Buffett once said “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price!” Now, whether the quote goes down well with you or not depends on how you look at some of those low priced stocks. Many Investors often get lured by the low tick size of IPOs as they think that would buy them more number of shares. They tend to buy cheap stocks, which are not that valuable, only to repent the decision later. At the same time, you need to watch out for extraordinarily high-priced IPOs as well. Keep in mind that however good a company’s future prospects are, a high price set at the IPO stage itself would eat into the prospect of an appreciation later. Comparing the company’s EPS with the average P/E Ratio for peer companies can give a good idea on what is a fair price for the IPO. If the price band seems far stretched from the fair price, you may be better off buying from secondary market instead

All in all, the time and effort you spent in taking some of these basic precautions before hopping in is likely to keep your money a lot safer! Do not invest if you think that price is not right or you aren’t convinced about the company’s business and whatever you do, do not invest simply because your buddy, broker, butler or barber does so!

SBI Tax Advantage Fund - Series II launched

January 13, 2012 0
SBI Tax Advantage Fund - Series II launched
SBI Funds Management Private Limited has launched Series II of its SBI Tax Advantage Fund. The investment objective of the scheme is to generate capital appreciation over a period of ten years by investing predominantly in equity and equity-related instruments of companies across large, mid and small market capitalization, along with income tax benefit

The fund is of ELSS class and therefore would be eligible for tax benefit under Sec. 80C of IT Act, 1961.Tax-saving schemes or equity-linked saving schemes (ELSS) qualify for deduction of up to Rs.1 Lakh under Section 80C of the IT Act.

The following are the brief details of SBI Tax Advantage Fund - Series II

SBI Tax Advantage Fund - Series II Details:
NFO opens on: December 22, 2011
NFO closes on: March 21, 2012
Nature of Fund: Equity
Fund Type: Close ended
Investment plans: Growth and Dividend
Entry Load: NIL
Exit Load: NIL
Minimum Investment: Rs.500 and in multiples of Rs.500 thereafter

The fund being of tax-saving class, there would be a mandatory lock-in period of three years

Wednesday, January 11, 2012

CRISIL Rating on MCX IPO reaffirmed

January 11, 2012 0
CRISIL Rating on MCX IPO reaffirmed
CRISIL Research has undertaken a fresh grading exercise for MCX as the grade assigned to the company on June 15, 2011 had expired and has reaffirmed grade 5/5 to the proposed initial public offer (IPO) of Multi Commodity Exchange of India (MCX)

This grade indicates that the fundamentals of the IPO are strong relative to other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy, sell or hold the graded instrument, its future market price or suitability for a particular investor

Monday, January 9, 2012

Goodwill Hospital and Research IPO withdrawn

January 09, 2012 0
Goodwill Hospital and Research IPO withdrawn
Book Running Lead Manager to the issue has informed the Exchange that the Book Building issue of Goodwill Hospital and Research Centre Limited has been withdrawn

Goodwill Hospital & Research Centre Ltd. is engaged in running a multi speciality hospital at Noida (Ojjus Medicare). The hospital provides specialty treatment like Neurology and Neuro surgery, Cardiology and Cardiac surgery and Orthopaedics with emphasis on Joint Replacements and Sports Injuries

Check back Indian IPO Blog for more IPOs!

Goodwill Hospital IPO closes today, subscription poor till now

January 09, 2012 0
Goodwill Hospital IPO closes today, subscription poor till now
Goodwill Hospital & Research Centre Ltd IPO, which has opened for subscription since December 30, 2011, has remained terribly unsubscribed with negligible bids in the HNI and Retail category been the only bids received so far. The following is the subscription status as on January 07, 2012:

Goodwill Hospital & Research Centre IPO - Subscription Status till Day 6, January 07, 2012:
QIB: 0.00 times
Non-Institutional Investors: 0.02 times
Retail: 0.01 times
Overall: 0.00 times

Sunday, January 8, 2012

Goodwill Hospital IPO closes today, subscription poor till now

January 08, 2012 0
Goodwill Hospital IPO closes today, subscription poor till now
Goodwill Hospital & Research Centre Ltd IPO, which has opened for subscription since December 30, 2011, has remained terribly unsubscribed with negligible bids in the HNI and Retail category been the only bids received so far. The following is the subscription status as on January 07, 2012:

Goodwill Hospital & Research Centre IPO - Subscription Status till Day 6, January 07, 2012:
QIB: 0.00 times
Non-Institutional Investors: 0.02 times
Retail: 0.01 times
Overall: 0.00 times

The IPO may be withdrawn if sufficient subscription is not received

Monday, January 2, 2012

Goodwill Hospital IPO remains unsubscribed till Day 2

January 02, 2012 0
Goodwill Hospital IPO remains unsubscribed till Day 2
Goodwill Hospital IPO has remained unsubscribed till the second day of its opening. The IPO which opened from December 30, 2011 has not received any subscription till Day 2, January 2, 2012.

CARE has assigned an IPO Grade 3 to Goodwill Hospital IPO. This means as per CARE, company has 'Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals

The IPO would remain open for subscription till Monday, January 9, 2012


SEBI examining e-IPO proposal

January 02, 2012 0
SEBI examining e-IPO proposal
A committee set up by market regulator SEBI to examine IPO-related issues is looking into a proposal to allow companies to sell shares through electronic Initial Public Offers (e-IPOs).

The proposed move would enable companies to sell shares electronically. Under such a system, investors would bid for shares online and would not be required to sign any papers physically.

“The committee set up by SEBI to undertake various issues relating to IPOs is looking into it (the e-IPO proposal). We are awaiting formal clearance from the ministry of corporate affairs for the e-IPO process,” Sebi Chairman U K Sinha told PTI.

Asked about Sebi’s proposal for reducing the number of days in the IPO process, he said, “The current period of 12-plus days and how to reduce it is part of the committee’s mandate.”

Calling for more awareness among the public on financial markets, he said an international conference is proposed to be held in Goa in February as part of investor education initiatives. A Sebi official said the conference will be co-hosted by Sebi and the Organisation for Economic Cooperation and Development (OECD).

The conference will explore domestic issues related to investor education as well as international issues and global trends, with special focus on Asia and its investor education needs, he said.

Source: http://www.business-standard.com/india/news/sebi-panel-examining-e-ipo-offer/460480/

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